CPF
CPF contribution rates for 2026: what employers pay
The CPF contribution rates employers pay from 1 January 2026, by age band, plus the S$8,000 Ordinary Wage ceiling and how the Additional Wage ceiling works.
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Every month, an employer in Singapore pays CPF for each employee who is a Singapore citizen or permanent resident. How much depends on three things: the employee’s age, their residency status and what they earn. These are the rules in force from 1 January 2026.
The rates from 1 January 2026
For Singapore citizens, and for permanent residents from their third year, earning more than S$750 a month:
| Employee’s age | Employer | Employee | Total |
|---|---|---|---|
| 55 and below | 17% | 20% | 37% |
| Above 55 to 60 | 16% | 18% | 34% |
| Above 60 to 65 | 12.5% | 12.5% | 25% |
| Above 65 to 70 | 9% | 7.5% | 16.5% |
| Above 70 | 7.5% | 5% | 12.5% |
Permanent residents in their first and second year pay lower, graduated rates. CPF Board publishes those in its own tables.
Lower wages
Smaller wages follow their own rules:
- S$50 or less a month: no CPF is payable.
- Above S$50, up to S$500: only the employer contributes.
- Above S$500, up to S$750: the employer pays its full share and the employee’s share is phased in.
The wage ceilings
CPF is only payable on wages up to a ceiling, and there are two of them.
Ordinary Wages are the monthly salary and allowances. From 1 January 2026 they are capped at S$8,000 a month, so any salary above S$8,000 in a month attracts no CPF. This was the last of four increases that started in September 2023, when the ceiling was S$6,300.
Additional Wages are bonuses and other one-off payments. Their ceiling is worked out for the whole year: S$102,000 minus the Ordinary Wages that were subject to CPF in that year. Take someone who earns S$8,000 every month. They have S$96,000 of Ordinary Wages in the year, so only the first S$6,000 of their bonuses attracts CPF.
When the age band changes
A new rate applies from the first day of the month after the employee’s 55th, 60th, 65th or 70th birthday. If an employee turns 55 on 10 March, their March payslip still uses the “55 and below” rates, and the “above 55 to 60” rates start with April.
A worked example
Take a 35-year-old Singapore citizen earning S$5,000 a month, with no bonus that month:
- Total CPF: 37% of S$5,000 = S$1,850
- Employee’s share: 20% of S$5,000 = S$1,000, deducted from their pay
- Employer’s share: S$1,850 − S$1,000 = S$850
When the figures are not whole dollars, CPF Board’s rounding applies. The total is rounded to the nearest dollar, with 50 cents counting as a dollar. The employee’s share always drops its cents. The employer pays the difference between the two.
What changes in 2027
On 9 June 2026, CPF Board announced another rise for older workers, taking effect on 1 January 2027:
| Employee’s age | Employer | Employee | Total |
|---|---|---|---|
| Above 55 to 60 | 16.5% | 19% | 35.5% |
| Above 60 to 65 | 13% | 13% | 26% |
The rates for employees aged 55 and below stay the same.
How Payro handles it
Payro works out the employer and employee CPF for every employee on every payslip. It uses the 2026 rates above, the S$8,000 Ordinary Wage ceiling and the yearly Additional Wage ceiling. Each employee moves to their new age band in the right month, and the rounding follows CPF Board’s rules.
Sources
Payro works this out on every payslip.
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